Global Automotive Axle & Propeller Shaft Market Report and Forecast 2024-2032

Automotive Axle and Propeller Shaft Market Size

The global market for automotive axle and propeller shaft attained a value of USD 35.50 billion in 2023. The market is expected to grow at a CAGR of 2.9% between 2024 and 2032 to reach almost USD 45.85 billion by 2032.

Automotive Axle and Propeller Shaft Market Outlook

• According to ACEA, global motor vehicle production hit 85.4 million units in 2022, rising by 5.7% from 2021, thus driving the global automotive axle and propeller shaft market.

• In 2022, the International Energy Agency noted a 60% surge in electric vehicle adoption, surpassing 26 million.

• Asia Pacific dominates the market share, driven by increasing automobile production in China and India.

Automotive Axle and Propeller Shaft Market Growth

Axle shafts serve as the primary mechanism for transferring rotational force and power from the transmission to propel the vehicle forward. When the transmission exerts force on the axle shaft, it induces rotation, which, in turn, causes the connected wheels to move. Similarly, the propeller shaft, an integral part of the vehicle's drivetrain, facilitates the transmission of torque from the transmission to the differential, which subsequently transfers this torque to the wheels, enabling vehicle motion.

Automotive axles and propeller shafts are vital components that play a pivotal role in propelling vehicles forward, which boosts automotive axle and propeller shaft market value. They are typically crafted from materials such as medium-carbon steel, glass fibres, thermoplastic polyamide, epoxy composite, chrome-molybdenum steel, and carbon fibres.

As reported by ACEA, the global production of motor vehicles reached 85.4 million units in 2022, marking a 5.7% increase compared to 2021. This surge in production has led to heightened demand, thus pushing the global market growth.

WORLD VEHICLE PRODUCTION, IN THOUSAND UNITS, IN 2022

Key Trends and Recent Developments

The global market is growing with rising demand for e-vehicles, all-wheel-driven vehicles, automatic vehicles, and technological advancements.

October 2023

Ford recalled 238,000 Explorers due to possible rear axle bolt issues, which can affect automotive axle and propeller shaft industry.

September 2023

Mahindra has initiated a service action for the XUV700, Scorpio-N, and Thar, involving the replacement of flex plate bolts, torque converter bolts, and propeller shaft bolts.

July 2023

ZF commercial vehicle solutions introduced innovative electric axle drive systems for both light and heavy trucks.

April 2023

RSB Group extended its presence in Sri City, Andhra Pradesh, by unveiling its 13th advanced facility dedicated to manufacturing propeller shaft assemblies, which can aid the expansion of automotive axle and propeller shaft industry.

Increasing demand for e-vehicles

The rise in electric vehicle adoption stems from their efficiency and eco-friendliness. According to the International Energy Agency, in 2022, the number of electric vehicles in use exceeded 26 million, marking a 60% increase compared to 2021.

Technological advancements

Innovative axle and propeller shaft designs, optimising gear positions and bearing placement are set to lighten axles and boost vehicle efficiency. Integration of sensors and data analytics enables predictive maintenance, enhancing performance and reliability.

All-wheel drive vehicle

As per the analysis of automotive axle and propeller shaft industry, AWD is a mechanism that distributes power to all four wheels continuously, offering benefits in traction and cold conditions. Full-time AWD setups power both front and rear axles consistently using a centre differential.

Growing interest in automatic vehicles

Rising interest in automatic cars is fuelling the requirement for robust axle and propeller shafts. These durable components endure heavy loads and transmit rotational force from the transmission to the wheels, initiating vehicle movement.

Global Automotive Axle and Propeller Shaft Market Trends

The surge in the desire for comfortable and fuel-efficient automobiles is anticipated to boost the global automotive axle and propeller shaft industry development in the future. Fuel-efficient vehicles, defined as those consuming less than 6 litres per 100 km, contribute to mitigating global warming emissions and minimising pollution.

As per the global market study, automotive axle and propeller shafts aid in enhancing fuel efficiency, reducing carbon emissions, lessening reliance on foreign oil, and promoting the utilisation of sustainable energy sources.

Industry Outlook

As per the automotive axle and propeller shaft industry analysis, American Axle & Manufacturing announced the development of innovative parts that are expected to be in high demand globally, a 3-in-1 electric drive unit and an e-Beam axle. The 3-in-1 electric drive unit combines the electric motor, power electronics, and gearbox into a single compact unit, offering improved performance and energy efficiency for electric vehicles. Meanwhile, the e-Beam axle is specifically designed for electric pickups and commercial vehicles, providing enhanced durability and performance for heavy-duty applications and further increasing automotive axle and propeller shaft industry revenue.

RSB Group, an engineering company, announced that it is expanding its presence in Sri City, India by launching its 13th advanced plant to manufacture propeller shaft assembly for the automotive sector. This new plant is equipped with high-end technology and machinery to develop propeller shaft assemblies with precision and efficiency. RSB Group's investment in this facility further demonstrates its commitment to meeting the growing demand for automotive components in the region and contributing to the growth of the automotive axle and propeller shaft industry.

Increasing Vehicle Production and EV Proliferation Drive the Success of the Global Market

• Increasing vehicle production for passenger and commercial vehicles boosts the automotive axle and propeller shaft market demand forecast.

• EV proliferation requires advanced axle and propeller shaft solutions.

• Rising aftermarket services for replacement parts and maintenance.

• Stringent emission regulations to improve fuel efficiency and reduce emissions.

Challenges Impacting the Global Market Include High Production Costs, Raw Material Volatility, and Supply Chain Disruptions

• Advanced materials and technologies increase production costs.

• Volatility in prices of steel, aluminium, and other raw materials affects profitability can affect automotive axle and propeller shaft demand growth.

• Global supply chain disruptions can impact timely delivery and production schedules.

• High competition among key players leads to price wars and reduced margins.

Key Trends Shaping the Global Market Focus on Lightweight Materials, Specialized Solutions for EVs, and Eco-Friendly Processes

• Lightweight material adoption to reduce weight and improve efficiency.

• Development of specialized axles and propeller shafts for electric and hybrid vehicles.

• As per the automotive axle and propeller shaft market dynamics and trends, increasing use of recyclable materials and eco-friendly manufacturing processes.

• Growth opportunities in regions like Asia-Pacific and Latin America due to rising automotive production.

Threats for the Players in the Global Market Arise from Economic Slowdowns, Regulatory Challenges, and Technological Changes

• Reduced vehicle sales during economic slowdowns.

• Regulatory challenges with varying international standards.

• Rapid technological changes requiring continuous innovation and adaptation can affect automotive axle and propeller shaft demand.

• Heavy reliance upon the automotive industry.

Key Players in the Global Market and Their Strategic Initiatives

The key players in the global automotive axle & propeller shaft market include American Axle & Manufacturing Holdings, Inc., Dana Incorporated, GKN Automotive Limited, Cummins Inc.., and ZF Friedrichshafen AG.

American Axle & Manufacturing Holdings, Inc.

• Innovative Product Development: Focuses on developing advanced axle and propeller shaft solutions with improved performance and durability through significant R&D investments, which can aid the growth of the automotive axle and propeller shaft market.

• Global Expansion and Localization: Pursues global expansion by setting up new manufacturing facilities and R&D centers in key regions and localizes products to meet specific regional needs.

Cummins Inc.

• Strategic Acquisitions and Partnerships: Enhances market presence and product portfolios through strategic acquisitions and collaborations, entering new market segments.

• Sustainability and Energy Efficiency: Focuses on developing energy-efficient and environmentally friendly components, adopting sustainable practices in manufacturing processes, and promoting green technologies, which can offer lucrative automotive axle and propeller shaft market opportunities.

ZF Friedrichshafen AG

• Integration of Smart Technologies: Incorporates smart technologies such as IoT and sensors into products, enabling real-time monitoring, predictive maintenance, and improved operational efficiency.

Dana Incorporated

• Advanced Manufacturing Techniques: Uses advanced manufacturing techniques like 3D printing and automation to enhance production efficiency and reduce costs, which can boost automotive axle and propeller shaft market revenue.

GKN Automotive Limited

• Customer-Centric Solutions: Offers customized solutions and comprehensive after-sales support, working closely with clients to meet their unique needs.

Automotive Axle and Propeller Shaft Industry Segmentations

Global Automotive Axle and Propeller Shaft Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Axle 
  • Live 
  • Dead
  • Tandem
• Propeller Shaft
  • Single Piece 
  • Multi Piece 
  • Slip-in Tube

Market Breakup by Axle Position

• Front

• Rear

Market Breakup by Vehicle Type

• Two-Wheeler

• Passenger Cars

• Commercial Vehicle

Market Breakup by Material

• Alloy

• Carbon Fibre

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Automotive Axle and Propeller Shaft Market Share

Based on axle type, the live axle leads the global market share which optimises vehicle performance and provides high torque

Due to the shorter distance between the engine and rear axle, coupled with advantages like reduced friction and mechanical losses, single-piece shafts are preferred over multi-piece shafts. Additionally, their lighter weight enhances performance at higher speeds. This is driving the demand of automotive axle and propeller shaft market.

Dead front axles, which remain stationary and don't rotate with the wheels, offer stability and predictable vehicle behaviour, particularly in tandem configurations capable of carrying heavier loads.

The rising demand for single-piece propeller shafts is fuelling the market growth, particularly in light-duty vehicles

As per the global automotive axle and propeller shaft market report, growing emphasis on enhancing vehicle performance and increasing torque output. Additionally, market expansion is driven by rising vehicle production and engineering innovations to meet evolving consumer preferences.

Slip-in tubes, resembling two-piece shafts but with added spline movement, offer greater angular flexibility. Their ability to adjust shaft length reduces vibrations and lessens the load on driveshaft components.

Front positions exert significant dominance in the global automotive axle and propeller shaft market

Front axles may be categorised as either live or dead. Live front axles can rotate the wheels, while rear axles, typically situated at the vehicle's rear, are predominantly live, transmitting power to the driving wheels.

Carbon fibre material is increasingly demanded in the global automotive axle and propeller shaft market owing to its ability to reduce drivetrain inertia, enhance critical speed margins, and lower overall weight

Decreased noise, vibration, and harmonics contribute to a smoother ride, benefiting both equipment and operators. Consequently, carbon fibre drive shafts experience reduced stress and exhibit prolonged durability.

SHARE OF ELECTRIC CARS, EU-27

Global Automotive Axle and Propeller Shaft Market Regional Analysis

In terms of geography, Asia Pacific dominates the global automotive axle and propeller shaft market share and is projected to maintain the lead in the foreseeable future. This growth is propelled by heightened automobile production in countries like China and India, driving demand for propeller shafts and automotive axles.

The European market is projected to grow at a steady pace during the forecast period due to rising demand for Electric Vehicles. According to the European Environment Agency, in 2022, approximately 56,500 electric vans were purchased in the EU-27, accounting for 5.5% of the market share.

In North America, Latin America, the Middle East, and Africa, the market is expanding due to increasing vehicle sales, the popularity of automatic cars, and technological advancements in the field.

Competitive Landscape

The market players are focusing on the electrification of vehicles and are introducing innovative electric axle drive systems to maintain their presence in the market.

Dana Limited, established in 1904, and headquartered in the United States, is an American provider of axles, driveshafts, transmissions, and various equipment for traditional, hybrid, and electric vehicles. Its offerings cater to light vehicles, commercial vehicles, and off-highway equipment sectors.

American Axle & Manufacturing Holdings Inc. was founded in 1994 and headquartered in the United States, designs, engineers, and produces driveline and metal forming technologies for electric, hybrid, and internal combustion vehicles and can aid automotive axle and propeller shaft market expansion.

Hyundai Wia founded in 1976 and headquartered in South Korea, is a diversified defence industry firm specialising in manufacturing middle and large-calibre artillery, naval guns, and aircraft landing gear. It also innovates automotive parts, machine tools, and defence technology.

Other global players in automotive axle and propeller shaft industry are Hitachi Astemo, Ltd, GKN Automotive Limited, JTEKT Corporation, Automotive Axles Limited, GNA Axles Limited, SAF-HOLLAND SE, and Northern Industrial Manufacturing, among others.

Key Highlights of the Report

Automotive Axle and Propeller Shaft Market Report Snapshots

Automotive Axle and Propeller Shaft Market Size

Automotive Axle and Propeller Shaft Market Growth

Automotive Axle and Propeller Shaft Market Trends

Automotive Axle and Propeller Shaft Market Share

Automotive Axle and Propeller Shaft Companies

Automotive Axle and Propeller Shaft Market Regional Analysis